WEB DESK
The Income Tax Appellate Tribunal, ITAT, has upheld a tax demand raised on 150 US million dollar investment by a US television network in NDTV in 2008.
An ITAT’s order upholding the tax demand means penalty proceedings are likely to commence shortly against NDTV.
The Income Tax department had raised the demand that 218.30 crore rupees was the tax that was sought to be evaded on investment of 642.54 crore rupees.
The department had sought a penalty of 436.8 crore rupees at the rate of 200 per cent of tax evaded. It had confirmed invocation of Sec 69A of Income tax Act dealing with unexplained money and upheld that transaction used principally as a devise for the distribution or diversion of sum to the Indian entity.
NDTV said, it was surprised at ITAT dismissing the appeal it had filed against the tax demand. The company said, the ITAT has accepted that there was no round-tripping or money laundering as was alleged by income tax department. It said, the order had been passed in haste and is having inconsistencies.